The document discusses bank mergers, defining them as the unification of two banking institutions into one. It provides examples such as the SBI merger with its five associate banks and examines the impact on profitability and operational efficiency. The document also outlines the pros and cons of mergers, along with suggestions for improving merger outcomes.

1. Merging of Banks and their
implications
Sonam
St. Joseph’s Degree & P.G
College, King Koti.
VISHISHTA
2K17
PRAGNYA
PAPER PRESENTATION TOPIC

2. CONTENTS
• What is Bank &
Merger?
• Meaning of Bank
Merger, Examples
• Case Study
• Suggestions
• Sources

3. INTRODUCTION
• Bank is an institution that provides a great variety of financial services.
• A merger is a deal to unite two existing companies into one new company.
An amalgamation is distinct from a merger because neither of the combining
companies survives as a legal entity.
• Bank Merger isa situation in which two banks pool their assets and liabilities to
become one bank.
• Examples: ICICI and Bank of Rajasthan
Oriental Bank of Commerce (OBC) and Global Trust Bank (2004)

4. CASE STUDY: SBI Merger with its Five
Associate Banks & Bharatiya Mahila
Bank
Merger of SBI with its 5 associates viz.,
 State Bank of Bikaner and Jaipur (SBBJ),
 State Bank of Mysore(SBM),
 State Bank of Travancore (SBT),
 State Bank of Hyderabad (SBH),
 State Bank of Patiala (SBP) and
 Bharatiya Mahila Bank took place
on 1st April, 2017 .

5. INTERPRETATION
• For reconstruction of SBI.
• Profitability of the bank after merger has fallen by approximately Rs.3000 crore because of
accumulated losses of associate banks. Online transactions of associate banks can now be
done from website of SBI.
• State Bank of India (SBI) has rationalised 1,000 branches in the April-September 2017
period, post- acquisition.
• PM: Asset Base 37.Lakh Cr. Total Branches 24000 Total ATMs 58700 Total Customers 50
Cr.
• SBI has become bigger than before. Now it has a larger asset base and ranks 45th among top
banks of the world.

6. PROS & CONS of Merger
PROS
• OPERATIONAL EFFICIENCY
• BETTER CUSTOMER SERVICE
• INCREASE IN PRODUCTIVITY
CONS
• EMPLOYEE DISCONTENTMENT
• MANAGEMENT ISSUES.
• BAD DEBTS OF ASSOCIATED
BANKS

7. SUGGESTIONS
• Detailed study of Business Models of the entities.
• Adaptable to changes of both micro and micro environment.
• Division of challenges and issues in 3 phases for a broader scope of research.
• Capital infusion and government support is must for PSBs.
• Amendments in laws.

8. SOURCES
• http://granthaalayah.com/Articles/Vol5Iss5/40_IJRG17_A06_331.pdf
• http://essayonquotes.com/bank-mergers-advantages-and-disadvantages
• http://www.allbankingsolutions.com/Articles/Articles-Pan-Merger-of-
Banks.htm
• file:///C:/Users/SONAM%20DUBEY/Downloads/2-2-14-869.pdf